Starting August 8, the Nairobi Securities Exchange (NSE) will allow retail investors to buy a single share of a listed company, removing the previous requirement of a minimum of 100 shares per transaction.
The announcement was made by the NSE in a statement released on July 29, confirming the approval of amendments to the equity trading rules. The main goal: to lower entry barriers and encourage broader participation, particularly from retail and first-time investors.
🔔 Stay updated on African Capital Markets – follow us on WhatsApp.
"We are delighted to inform all investors and the public that, effective August 8, 2025, shares will be traded on the NSE in multiples of one (1) unit,” NSE stated.
“This significant change follows the approval of amendments to the NSE Equity Trading Rules, allowing the buying and selling of shares in single units,” it further added.
Until now, investing on the Kenyan stock exchange required purchasing in lots of 100 shares, known as board lots. This represented a significant amount for some stocks, over 30,000 Kenyan shillings to buy into a company like Standard Chartered or Kakuzi. For many investors, that threshold was simply too high.
There was an alternative: the Odd Lot Board, a secondary platform for those wishing to buy fewer than 100 shares. But it suffered from low liquidity, long transaction times, wide price spreads, and crucially, trades on it did not count toward the official closing price, distorting market transparency.
From now on, all transactions, even for a single share, will be executed on the Main Order Book. The Odd Lot Board will be discontinued. However, it is worth noting that the official closing price will only change if at least 100 shares are traded during a session.
How to Buy Shares on the Nairobi Securities Exchange
Despite this change, the investment process remains the same. Here are the main steps to get started on the NSE:
- Open a CDS (Central Depository System) account, where your shares will be held electronically.
- Open a trading account with a licensed stockbroker, who will transmit your buy or sell orders to the Exchange.
- Provide the required documents: identification card, tax number (KRA PIN), passport photos, and proof of address or income.
Once you're set up, you can select the shares you want to buy, the quantity, and the price — either at market price (best available at the time) or at a limit price of your choosing.
The entire process is regulated by the Capital Markets Authority (CMA), which ensures transparency and fairness in Kenya's capital markets.
This strategic shift aligns with the NSE’s broader vision of increasing the number of active investors from 2 million to 9 million by 2029. By allowing the purchase of a single share, the Exchange aims to attract young people, more retail investors, and diaspora investors looking to support local companies.
